The Challenges in Financial Capital Investment to Start Up Entrepreneurs, The Causes of Decline in Rapid Economic Growth for a Nation

Abstract

The purpose of this article is to access the challenges in financial capital investment to start up entrepreneurs. This manuscript delves into the intricate dynamics between the challenges faced by start-up entrepreneurs in securing financial capital and the resultant decline in rapid economic growth for nations. In an era marked by the recognition of entrepreneurship as a driving force for economic progress, understanding the obstacles hindering start-up ventures is paramount. The study employs both quantitative and qualitative approach to scrutinize the multifaceted challenges encountered by start-up entrepreneurs when seeking financial capital. The target population for this article are startup entrepreneurs, investors and financial institutions. The number of respondents sampled for the study were 70, made up of 50 entrepreneurs, 10 investors and 10 financial institutions. A convenience sampling method was employed to recruit participants, ensuring that a diverse group of entrepreneurs, investors and financial institutions are included in the sample. The article highlights that personal savings, family and friends' support, bank loans, angel investors, venture capital, and crowd financing are the primary sources of funding for new businesses. It proposes tactical and policy solutions to reduce these barriers, including access to markets, financing, skilled labor, education, and training. Overall, the study highlights the challenges faced by start-up entrepreneurs in obtaining financial capital, highlighting the impact on a nation's economic growth and suggests targeted interventions to boost competitiveness.